By Michael Collins, Managing Principal, EquiNova
Five years ago, most of us hadn’t heard of a mysterious disease called COVID. Those also were the days when nobody was expecting Russia to invade Ukraine. Or that lumber prices would hit stratospheric heights. Or that Donald Trump would win a second presidential election.
We’ve had such crazy times this decade that many dealers have given up trying to project 2025 budget forecasts from recent years’ performances and instead project from 2019. But even as you ignore these most recent five years when writing your budgets, I suggest you take a moment to reflect on what these past five years have indeed taught you.
The biggest lesson, I believe, is resilience.
COVID’s arrival sparked unexpected—and unexpectedly quick—decision-making. Dealers speedily embraced e-commerce, curbside service, and BOPIS (buy online, pick up in store). Later, the rocketing up of lumber prices forced buyers, sales reps, and operations managers to shift their stocking and pricing strategies almost daily. Inflation has altered dealers’ KPI charts to track sales volume as much as sales dollars.
I believe these experiences have made LBM operations nimbler and thus better able to handle shocks. These stress-tested skills enhance pro-oriented dealers’ attractiveness to investors, a group that already likes the housing industry’s long-term prospects. No matter whether you want to grow or to sell, we can help show how your ability to prosper over these past five years makes you a great investment.
